The calculation of a discounted payback period is the measure that gives the information about a series of cash flows and the decision to rule criteria of the discounted payback. Introduction: The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

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Answer 1

Question

Chapter 9, Problem 4CRCT

a)

Summary Introduction

To discuss: The calculation of a discounted payback period is the measure that gives the information about a series of cash flows and the decision to rule criteria of the discounted payback.

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

b)

Summary Introduction

To discuss: The problems of discounted payback period by assessing the cash flows

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

c)

Summary Introduction

To discuss: Advantages of discounted payback over regular payback period. In addition, to discuss whether the discounted payback can be longer than the regular payback

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

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3. Describe the Discounted Cash Flow Method. How is this value determined, and what are the assumptions/limitations?

LO 1 8.3 Payback Period Concerning payback: Describe how the payback period is calculated and describe the information this measure provides about a sequence of cash flows. What is the payback criterion decision rule? a. b. What are the problems associated with using the payback period as a means of evaluating cash flows? What are the advantages of using the payback period to evaluate cash flows? Are there any circumstances under which using payback might be appropriate? Explain. с.

what are usefulness and weakness of discounted cash flow method?

Answer 2

Question

Chapter 9, Problem 4CRCT

a)

Summary Introduction

To discuss: The calculation of a discounted payback period is the measure that gives the information about a series of cash flows and the decision to rule criteria of the discounted payback.

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

b)

Summary Introduction

To discuss: The problems of discounted payback period by assessing the cash flows

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

c)

Summary Introduction

To discuss: Advantages of discounted payback over regular payback period. In addition, to discuss whether the discounted payback can be longer than the regular payback

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

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Answer 3

Question

Chapter 9, Problem 4CRCT

a)

Summary Introduction

To discuss: The calculation of a discounted payback period is the measure that gives the information about a series of cash flows and the decision to rule criteria of the discounted payback.

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

b)

Summary Introduction

To discuss: The problems of discounted payback period by assessing the cash flows

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

c)

Summary Introduction

To discuss: Advantages of discounted payback over regular payback period. In addition, to discuss whether the discounted payback can be longer than the regular payback

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

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Answer 4

Question

Chapter 9, Problem 4CRCT

a)

Summary Introduction

To discuss: The calculation of a discounted payback period is the measure that gives the information about a series of cash flows and the decision to rule criteria of the discounted payback.

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

b)

Summary Introduction

To discuss: The problems of discounted payback period by assessing the cash flows

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

c)

Summary Introduction

To discuss: Advantages of discounted payback over regular payback period. In addition, to discuss whether the discounted payback can be longer than the regular payback

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

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Answer 5

Chapter 9, Problem 4CRCT

a)

Summary Introduction

To discuss: The calculation of a discounted payback period is the measure that gives the information about a series of cash flows and the decision to rule criteria of the discounted payback.

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

b)

Summary Introduction

To discuss: The problems of discounted payback period by assessing the cash flows

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

c)

Summary Introduction

To discuss: Advantages of discounted payback over regular payback period. In addition, to discuss whether the discounted payback can be longer than the regular payback

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

Answer 6

Chapter 9, Problem 4CRCT

a)

Summary Introduction

To discuss: The calculation of a discounted payback period is the measure that gives the information about a series of cash flows and the decision to rule criteria of the discounted payback.

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

Answer 7

Chapter 9, Problem 4CRCT

a)

Summary Introduction

To discuss: The calculation of a discounted payback period is the measure that gives the information about a series of cash flows and the decision to rule criteria of the discounted payback.

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

Answer 8

b)

Summary Introduction

To discuss: The problems of discounted payback period by assessing the cash flows

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

Answer 9

b)

Summary Introduction

To discuss: The problems of discounted payback period by assessing the cash flows

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

Answer 10

c)

Summary Introduction

To discuss: Advantages of discounted payback over regular payback period. In addition, to discuss whether the discounted payback can be longer than the regular payback

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

Answer 11

c)

Summary Introduction

To discuss: Advantages of discounted payback over regular payback period. In addition, to discuss whether the discounted payback can be longer than the regular payback

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

Answer 12

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Answer 14

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Answer 15

Ch. 9.1 - Prob. 9.1ACQ Ch. 9.1 - Prob. 9.1BCQ Ch. 9.2 - Prob. 9.2ACQ Ch. 9.2 - Why do we say that the payback period is, in a...Ch. 9.3 - Prob. 9.3ACQ Ch. 9.3 - What advantage(s) does the discounted payback have...Ch. 9.4 - What is an average accounting rate of return...Ch. 9.4 - What are the weaknesses of the AAR rule?Ch. 9.5 - Prob. 9.5ACQ Ch. 9.5 - Is it generally true that an advantage of the IRR...

Solution Summary: The author explains that the discounted payback period is a technique of capital budgeting, which is utilized to identify the project’s profitability.

Concept explainers

To discuss: The problems of discounted payback period by assessing the cash flows

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

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Chapter 9 Solutions

Solution Summary: The author explains that the discounted payback period is a technique of capital budgeting, which is utilized to identify the project’s profitability.

Concept explainers

To discuss: The problems of discounted payback period by assessing the cash flows Introduction: The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.

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Chapter 9 Solutions

To discuss: The problems of discounted payback period by assessing the cash flows

Introduction:

The discounted payback period provides the time taken to form a breakeven from undertaking the initial expenses by discounting the future cash flows.